Despite all the increases, shoppers are only expected to spend 4% more that they did during the last holiday shopping season. The shift to online shopping is one of the reasons package shipments are expected to increase.

The jump comes as the Postal Service faces serious financial problems. Last month it reached its $15 billion debt limit as capped by Congress and is barred from borrowing more. Starting Jan. 27, the service will hike the price of a first-class stamp. It is looking to cut staff by 150,000 by 2015 in an effort to reduce losses.